No 95
House of Representatives
Supplementary Order Paper
Tuesday, 30 June 2015
Gambling Amendment Bill (No 3)
Proposed amendments
Clayton Mitchell, in Committee, to move the following amendments:
Clause 6
Replace clause 6 (page 6, lines 6 to 14) with:
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Section 30 amended (Meaning of class 4 gambling)
Delete section 30(b).
New clause 6AA
After clause 6 (page 6, after line 14), insert:
6AA New section 30A inserted (Commission payable to class 4 gambling venue operator)
After section 30, insert:
30A Commission payable to class 4 gambling venue operator
Notwithstanding any other provisions in this Act, any class 4 gambling venue operator (holding an appropriate operator’s licence)
will be entitled to a commission at a rate of 1.5% of gross turnover
(as defined by the electronic monitoring system) from all gambling
equipment hosted on their premises.
Clause 13
Replace clause 13 (page 12, lines 4 to 8) with:
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Section 115 deleted (Payment of commission prohibited)
Delete section 115.
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Proposed amendments to
SOP No 95
Gambling Amendment Bill (No 3)
Clause 18
In clause 18, in section 371(1), delete new paragraph (dd) (page 15, line 32 to page
16, line 5).
Explanatory note
This Supplementary Order Paper amends clauses 6, 13, and 18, and inserts new
clause 6AA, to allow commissions to be payable to class 4 gambling venue operators.
The Act has a number of requirements that relate to venue costs. The requirements
state that the cost of operating gambling machines (including venue payments) must
be “actual, reasonable and necessary costs”, in conducting gambling and ensuring
legal compliance. The costs must be in proportion to the size of the operation, and
should take into account normal market values or prices for the goods and services
provided.
The current calculation for site rental payments is cumbersome and confusing. This
Supplementary Order Paper is a clean, fair and simple way for calculating site rental
payments to operators from societies and for the ease of monitoring by the Department of Internal Affairs.
This Supplementary Order Paper recognises the higher staff and maintenance costs of
high turnover venues compared with low turnover venues. It does so by linking rental
payments to a commission payment as a percentage of gross turnover.
To allow for commission payments this Supplementary Order Paper deletes section
30(b) and section 115. It also adds a new section 30A, enabling any class 4 operator
(holding an appropriate licence) to be entitled to a commission rate of 1.5% of gross
turnover from all class 4 gambling equipment hosted on their premises.
This style of operator payments is in line with the TAB and Lotto’s commission-based
payments for their venue operators, and therefore this Supplementary Order Paper
provides alignment with other gambling site rental payments in New Zealand.
Wellington, New Zealand:
Published under the authority of the House of Representatives—2015
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